SINGAPORE - Ascott Residence Trust said its issue of perpetual securities at a fixed distribution rate of 4.68 per cent per annum has received orders exceeding four times the issue size.
It raised S$250 million from the issuance which will be used to fund potential acquisitions, Ascott said in a statement posted on Singapore Exchange.
Lim Jit Poh, Ascott Residence Trust Management's Chairman, said: "Perpetual securities is a good source of funding to finance our acquisitions while maintaining our gearing at about 40 per cent.
"To further optimise returns for Unitholders, we are actively pursuing acquisitions to enhance Ascott REIT's portfolio as we seek to achieve our target asset size of S$6 billion by 2017."
The perpetual securities which will be accounted as equity will be unrated. In April this year, Moody's Investors Service improved Ascott Reit's rating from Baa3 corporate family rating to Baa3 issuer rating, recognising the trust's stable and healthy financial profile, supported by a track record of prudent financial management.